GRAMMER AG — Investor Presentation 2021

Mar 31, 2021

15,00 15,00

ONE GRAMMER COLLABORATING FOR A SUSTAINABLE FUTURE

Analyst Conference Ursensollen, March 31st, 2021

New Way of Working enables stronger buy-in and faster execution WoW@GRAMMER

OUR WoW-CODE:

• Collaboration
• Openness
• Drive
• Empowerment

New regional organization promotes local empowerment Regions AMERICAS, EMEA and APAC with full P&L responsibility

REGIONAL STRENGTHS

• Understanding market needs
• Higher customer intimacy
• Right products for local demands

ONE GRAMMER. ONE TEAM. Achievements 2020: Course is set in EMEA

New GRAMMER Campus in Ursensollen as hub for innovation and better regional collaboration

Passenger seats for the next generation of highspeed trains for the train manufacturer Alstom

Cooperation with the sound expert HARMAN for headrests with integrated loudspeakers

ONE GRAMMER. ONE TEAM.

Achievements 2020: Progress through integration and expansion in AMERICAS

ONE GRAMMER. ONE TEAM.

Achievements 2020: Stronger presence and higher localization in APAC

Important cooperation projects with strategic partner Ningbo Jifeng kicked off in 2020

Successful start of production of GRAMMER's MSG 90.6 truck seats in China

Expansion of footprint in China to support further growth: 2 new plants in Ningbo and Shenyang

GRAMMER in line with market - strong performance in APAC

Global market development light vehicles

Market: March '21 IHS Light Vehicle Production GRAMMER Automotive Revenue

GRAMMER outperforms markets globally

Global market development commercial vehicles

Market: March '21 LMC Production [Truck only] GRAMMER Commercial Vehicles Revenue (Truck, Rail & Bus and Offroad Business)

Revenue development in the regions

Strong impact of COVID-19 with solid recovery in HY2 and continuous growth in APAC

• GRAMMER develops better than the overall market
• Significant recovery of sales in Americas and EMEA in HY2
• Customer plant shut-downs in the Americas and EMEA from mid March up to mid June*
• APAC region with full-year sales increase of +5.4%

* Latest re-start of production in Mexican sites

Revenue development by segment

Two-leg strategy pays off: CV segment less affected by COVID-19 pandemic

Revenue and EBIT

Significant impact from COVID-19 pandemic and one-time effects

Revenue and operating EBIT-Margin in %

Significant improvement in operating EBIT in HY2 - measures already taking effect

• Revenue HY2 nearly on the level of PY, includes catch up effects from customers
• Operating EBIT of EUR +34.0 million in HY2 compared to EUR -45.7 million in HY1
• Operating EBIT in HY2 25% (EUR +7.1million) up compared to same period PY

GRAMMER Automotive

Significant recovery in HY2 after severe customer production interruptions in HY1

GRAMMER Commercial Vehicles

Affected by general market slow-down but more resilient to crisis

• Revenue declined by -10.4%
• Recovery of sales in HY2 of +4.6% vs. 2019 and strong recovery vs. HY1 (-22.8%)
• Significant full-year revenue improvement in APAC with +19.3%
• Operating EBIT includes onetime effects items of EUR -5.8 million
• Provisions for restructuring measures of EUR 5.6 million

Successful financial transactions in a difficult environment

In addition to a scheduled refinancing, 2020 was dominated by liquidity protection measures

ONE GRAMMER. Way of Working: Cross-functional team behind the scenes

Solid liquidity position and medium- to long-term financing

Liquidity headroom increased and equity strengthened on a sustainable basis

• 23% 22% Strong free cash flow generation in HY2 with EUR 70.5 million
  • Repayment of a bonded loan in the amount of EUR 83.0 million from own liquidity resources leading to an overall reduction of financial debt from EUR 428 million to EUR 377 million
  • Equity strengthening measures almost completely compensated the negative impact of the COVID-19 pandemic

Protecting our employees was - and still is - a top priority for us We took immediate action and quickly implemented protective measures

Health & Safety

• Comprehensive hygiene concepts
• Provision of mouth-nose protection masks
• Enhanced mobile working

• 1 plant closure by Q2 2021 • New cut&sew plant opened in Mexico • Former TMD plant starting Commercial Vehicles seat production • 3 plant closures by Q3 2021 • Optimization supply chain • Set-up of competence centers for selected technologies and products • 1 plant closed in Q3 2020 • 2 new plants in Ningbo and Shenyang • Optimization of the Commercial Vehicle footprint in APAC Footprint optimization by consolidation and competence concentration measures AMERICAS EMEA APAC

A strong global footprint is the decisive determinant of success

Rapid reaction to reduced workload

Short-time and furloughs, reduced number of employees in a socially acceptable way

• Number of employees adjusted to reduced workload -4.8%
• Regional differences taken into account: EMEA -8.5%, Americas +0.6% and APAC +1.8%
• Short-time working in Germany and comparable measures in all other countries (e.g. furloughs in Americas)
• Volunteer program successfully realized
• Reduction of around 300 indirect positions in Germany by mid 2021

Investments focused on key projects and future business Leads to a significant decrease compared to the previous year in EMEA and AMERICAS

• Significant reduction of investment spending by -36.9%
• Regional developments taken into account: EMEA -31.7%, Americas -61.4% and APAC +37.7%

• Commercial Vehicles: EUR 20.9 million, Automotive: EUR 43.3 million and Central Services EUR 19.6 million

• Investments focused on key projects and the digitalization of core processes and systems in terms of effectiveness and efficiency

Strategy to recover and grow

THREE MAIN GOALS

• Strengthen and grow in the regions
• Review & enhance product portfolio
• Broaden customer base

Enhance product portfolio I

PURE – FREEDOM TO MOVE

• Trend towards more individuality
• Modular and adjustable interior elements
• Lightweight and sustainable materials

Enhance product portfolio II

INNOVATING THE CABIN INTERIOR

• Trend towards more individuality
• Integration of E/E interfaces
• Excellence in Fit and Finish

Enhance product portfolio III

NEW SEAT-SERIES FOR URBAN MOBILITY

• Attractive and modular design
• Lightweight construction
• Sustainable materials

Broaden customer base

EXCITE EXISTING AND ATTRACT NEW CUSTOMERS WITH

• Innovation
• Sustainability
• Global & local support

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Outlook 2021

Outlook 2021: Revenue and earnings growth

Growth of revenue to around EUR 1.8 billion (2020: EUR 1.7 billion)* Significant increase of operating EBIT to around EUR 65 million (2020: EUR -11.7 million)*

*This outlook assumes that the global economy and political environment will develop in a stable manner and that there will be no further plant closures due to the COVID 19 pandemic in 2021.

Revenue and EBIT

Preliminary figures for the first quarter of 2021 confirm positive trend

• 8 % increase in revenue compared to Q1 2020
• Continued high demand in both segments, especially in the APAC and EMEA regions
• Operating EBIT significantly above Q1 2020
• Continuous and efficient implementation of cost and process optimization measures

Q&A Session

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GRAMMER Group

Legal disclaimer

By attending the presentation to which this document relates or by accepting this document and not immediately returning it, you agree to be bound to the following limitations:

This presentation and the topics addressed therein have been compiled for discussion purposes only and are not intended to be a comprehensive summary of all business, financial, legal, practical and other aspects or to cover all issues relating to an investment in Grammer AG. A binding commitment will only result from a definitive and binding agreement.

This presentation does not constitute or form part of, and should not be construed as, an offer to sell or a solicitation of an offer to buy or subscribe for any securities and neither this presentation nor anything contained herein shall act as an inducement to enter into or form the basis of, or be relied on in connection with, any offer or contract or commitment whatsoever.

This presentation does not constitute an offer for sale of any securities in the United States. Neither this presentation nor any copy of it may be taken or transmitted in or into the United States of America, its territories or possessions or distributed, directly and indirectly, in the United States of America, its territories and possessions or to U.S. Persons (as such term is defined in Regulation S under the Securities Act). Any failure to comply with this restriction may constitute a violation of U.S. securities laws. Neither this presentation nor any copy of it may be taken or transmitted in or into Australia, Canada or Japan or distributed, directly and indirectly, in Australia, Canada or Japan. The distribution of this presentation in other jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe, any such restrictions.

This presentation contains estimates, forecasts and expectations. Such estimates, forecasts and expectations are subject to risks and elements of uncertainty that could result in deviation of actual developments from expected developments. The estimates, forecasts and expectations are only valid at the time of publication and there can be no assurance that future results or events will be consistent with any such estimates, forecasts or expectations. Grammer AG does not intend to update any such estimates, forecasts or expectations and assumes no obligation to do so. Grammer AG does not assume any liability for the statements made.

Neither Grammer AG nor any of its respective directors, officers, or employees nor any other person accept – to the extent legally possible – any liability for any loss howsoever arising from any use of this presentation or its contents or otherwise in connection therewith. Please take appropriate advice before applying anything contained in these materials to specific issues or transactions.

This presentation is confidential and is being supplied to you solely for your information and may not be reproduced, redistributed or passed on to any other person or published, in whole or in part, for any purpose. This presentation or any copy of it may not be distributed to any third party, including the media or the press.

Thank you for your attention. We deliver what matters.

Contact Investor Relations Tanja Bücherl Phone: +49 9621 66 - 2113 E-mail: tanja.buecherl@grammer.com

Key figures

[IFRS, in € million]	2020	2019	Q4 - 2020	Q4 - 2019	Chg.
Group Revenue	1,710.7	2,038.5	513.2	488.9	5.0%
EBITDA	41.7	159.8	24.5	35.2	-30.4%
EBITDA Margin in %	2.4	7.8	4.8	7.2	-2.4%-points
EBIT	-46.1	74.5	1.1	12.6	-91.4%
EBIT Margin in %	-2.7	3.7	0.2	2.6	-2.4%-points
Operating EBIT	-11.7	77.0	11.6	17.8	-34.8%
Operating EBIT Margin in %	-0.7	3.8	2.3	3.6	-1.3%-points
Net Profit	-64.7	43.5	-6.2	15.1	-141.1%
EPS in €	-5.10	3.56	-0.43	1.24	-100.3%
Total Assets	1,376.4	1,474.4	1,376.4	1,474.4	-6.6%
Equity	302.2	342.2	302.2	342.2	-11.7%
Equity-Ratio in %	22.0	23,2	22.0	23.2	-1.2%-points
Net Financial Debt	287.1	285.0	287.1	285.0	0.7%
Gearing Ratio in %	95.0	83.3	95.0	83.3	11.7%-points
Capex (w/o financial assets)	83.8	132.8	35.0	43.5	-19.6%
Depreciation	87.8	85.3	23.4	22.6	3.8%
Employees (average)	14,192	14,910	14,192	14,910	-4.81%

Analyst Conference Fiscal Year 2020 33

Financial Calendar 2021